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HomeLet reveals Autumn dip in rental prices

Posted on 2014-12-15

  • Nine out of 12 UK regions saw rental price growth in November 2014 compared to the same month last year
  • Autumn dip sees nine out of 12 UK regions record lower rental prices in November 2014 compared to October 2014 
  • Average monthly private rent in the UK is £874 per month (£702 excluding London) 
  • Scotland shows strong rental price growth with 8.7 per cent increase in November 2014 compared to the previous month and 11.7 per cent increase compared to the same month last year

New findings from the November HomeLet Rental Index have revealed that the private rental market remains strong with widespread annual growth, despite an autumn dip in rental prices. On average, rental prices are 8.3% higher across the UK in November 2014, at £874 per month, compared to the same month last year when the average UK rent was £807.

Nine out of 12 UK regions have recorded higher rental prices in November 2014 compared to the same month last year, even accounting for a 0.6 per cent decrease in UK average rental prices since October 2014. Regions that have experienced the highest growth compared to this time last year include Scotland, Greater London, and the West Midlands, with rental prices 11.7 per cent, 11 per cent and 8.7 per cent higher than this time last year, respectively.

Despite the strong annual comparison figures, the HomeLet Rental Index has recorded an ‘autumn dip’ in rental prices, with rents agreed on new tenancies falling in the majority of UK regions in September and October this year. This month, that trend continues with all regions of the UK with the exception of Scotland, the East Midlands and the South West recording lower prices in November than in October 2014. Scotland recorded a monthly increase in rental prices of 8.7 per cent, with the East Midlands and the South West recording monthly increases of 1.5 per cent and 1.4 per cent respectively.

The recent dip in prices reflects typical seasonal movement in the rental market and sits within the context of a market that remains strong. Annually, only three regions of the UK recorded lower rental prices in November 2014 compared to the same month last year: the North West dropped -3.6 per cent; the North East -2.5 per cent and Wales -2 per cent.

Commenting on the report, Martin Totty, Barbon* Insurance Group’s Chief Executive Officer, said: “We see the autumn’s moderation in rental growth as broadly in line with the typical seasonal effect that often sees rental prices balance or even slip into reverse in many areas of the country at this time of year. The outlook for the private rented sector remains positive for several reasons - the pace of housebuilding is unlikely to have a significant effect on the supply of property to buy or to rent in the short term, high house prices, and a mortgage market where lending criteria remains constrained, are combining to ensure that the demand from tenants needing rented accommodation remains strong.

“In terms of seasonal highs we see Scotland bucking the trend of the rest of the country, the rapid growth in the Scottish rentals market reflects the strength of the economy north of the border – particularly in oil-rich Aberdeen, which has a thriving rentals sector, but also in other Scottish cities and throughout the country. A report** published this week shows Scotland now has the highest employment and economic activity rates – and the lowest unemployment rate – of the any of the four nations of the UK.”

Rental figures from the November 2014 HomeLet Rental Index 


November 2014

October 2014

Monthly variation

November 2013

Annual variation







East Midlands






South West






Greater London






Yorkshire & Humber






West Midlands






Northern Ireland






South East












North East






East Anglia






North West












Overall UK average






UK excluding Greater London







source HomeLet

Based on new tenancies in Nov 2014

Based on new tenancies in Oct 2014

Monthly growth Oct-Nov 2014


Based on new tenancies in Nov 2013

Comparison of rent prices Nov 2013 to Nov 2014


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